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Steve Nielsen has been the CEO of Dycom Industries, Inc. (NYSE:DY) since 1999, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Dycom Industries.
Check out our latest analysis for Dycom Industries
Comparing Dycom Industries, Inc.'s CEO Compensation With the industry
According to our data, Dycom Industries, Inc. has a market capitalization of US$2.7b, and paid its CEO total annual compensation worth US$3.9m over the year to January 2020. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.
In comparison with other companies in the industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$4.7m. From this we gather that Steve Nielsen is paid around the median for CEOs in the industry. Moreover, Steve Nielsen also holds US$56m worth of Dycom Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$1.1m | US$1.0m | 27% |
| Other | US$2.8m | US$2.9m | 73% |
| Total Compensation | US$3.9m | US$3.9m | 100% |
On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. Dycom Industries is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Dycom Industries, Inc.'s Growth Numbers
Over the last three years, Dycom Industries, Inc. has shrunk its earnings per share by 42% per year. It saw its revenue drop 4.9% over the last year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Dycom Industries, Inc. Been A Good Investment?
With a three year total loss of 28% for the shareholders, Dycom Industries, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.